Rents in Lagos and Abuja are rising by as much as 20 per cent yearly in some locations, worsening housing pressure for tenants and deepening affordability challenges across Nigeria’s major cities.
The Managing Director of Stallion Cardinal Homes, Dr Waliu Adeoye, disclosed this in a statement, warning that the country’s rental market was under severe strain as most urban residents depend on rented accommodation.
According to Adeoye, annual rent increases of between 15 and 20 per cent in Lagos and Abuja, coupled with the widespread demand for one to two years’ rent upfront, have made decent housing increasingly unaffordable for many households.
He noted that Nigeria’s real estate sector has reached a critical point in 2026, with several policy reforms emerging at the same time that could reshape housing access if properly implemented.
“The rental market is in crisis. Most urban Nigerians are renters, yet rising rents and advance payment requirements are locking many families out of decent housing,” he said.
Adeoye said recent reforms, including tax changes, land digitalisation, mortgage recapitalisation and new housing data initiatives, represent the most coordinated housing policy effort in decades. However, he questioned whether the reforms would move beyond policy documents to real impact on housing supply and affordability.
He added that while private developers are contributing through flexible payment structures and site-and-service models, individual efforts cannot replace systemic reform.
According to him, Nigeria’s housing deficit has continued to widen, growing from about 17 million units ten years ago to an estimated 28 million units, despite repeated policy announcements.
On tax reforms, Adeoye welcomed provisions allowing partial rent deductions and tax reliefs across parts of the construction value chain, but said their impact would be limited. He noted that a rent deduction capped at ₦500,000 offers little relief to tenants paying millions of naira annually, while mortgage tax incentives remain ineffective with mortgage penetration below one per cent of GDP.
He identified land administration as the biggest bottleneck in the sector, noting that less than five per cent of land parcels in Nigeria are formally titled, leaving billions of dollars in property value as dead capital.
Adeoye said the Land4Growth digital land titling programme could be transformational if properly implemented by state governments, stressing the need for transparency and secure tenure, including for residents of informal settlements.
On mortgage financing, he noted that Nigeria’s mortgage-to-GDP ratio of about 0.5 per cent reflects limited access to housing credit. Although the Federal Mortgage Bank offers single-digit loans under the National Housing Fund, he said fewer than 20,000 Nigerians benefit annually.
He added that while the proposed Ministry of Finance Incorporated Real Estate Investment Fund is a step forward, it largely excludes informal sector workers who make up over 90 per cent of the labour force.
Adeoye also urged caution on rental regulation, warning that overly rigid controls could discourage housing supply. He advocated tenant protections through standardised lease agreements, dispute resolution mechanisms and incentives for long-term affordable rentals rather than heavy-handed price controls.
